Money Wellness
An illustration of children playing at nursery.
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calendar icon10 Dec 2024

Struggling families missing out on childcare

Free childcare is growing, but many poorer families still struggle to access it.

Recent research by the Institute for Public Policy Research (IPPR) and Save the Children shows that just one in three of the poorest families with young children use formal childcare, compared to 73% of wealthier households.

The social class factor

IPPR's analysis reveals that access to formal childcare varies greatly across different social classes.

Over two-thirds of parents who work as doctors or lawyers, for example, rely on formal childcare, while fewer than half of those in lower-paid jobs, such as cleaners and care workers, do the same.

Disadvantaged areas

The gap is made worse by the lack of good childcare, especially in poor and rural regions:

  • There are 32% fewer childcare spots for each child in deprived areas.
  • Rural areas have 31% fewer places than town and city centres.

The quality of childcare access varies drastically both at a regional and local level, e.g. some areas provide five times more places for children than usual, while also having some of the worst served in the country.

Why does childcare access vary so much?

The drop in childminders is a big part of the problem. There are about 3,000 fewer every year.

Another problem is the shortage of spaces in school-based nurseries.

Although more schools have started offering nursery services, the number of children using them has dropped by 14% (about 42,000 kids) since 2015.

This is most noticeable in poorer areas and seems to be due to schools prioritising full-time places for children from working families, instead of offering part-time spots for those who don't meet certain criteria.

Possible solutions

IPPR and Save the Children have suggested several solutions:

  • creating not-for-profit nursery trusts
  • urging local councils to combine funds for underprivileged areas
  • developing a national strategy to help childminders
  • boosting funding for areas in need
  • changing the funding system for special educational needs and disabilities (SEND)

What the experts say

Experts argue that without a shift in approach, the government risks leaving vulnerable families behind.

Ruth Talbot, policy and advocacy adviser at Save the Children UK, says the recommendations would help a half a million more kids meet their early learning goals.

Jodie Reed, associate fellow at IPPR, says the poorest children and families could be left “far behind” without childcare that matches their needs.

“There is an opportunity to re-imagine childcare as a public-led service – more akin to schools,” Reed adds.

Dr Jamie O’Halloran, senior research fellow at IPPR, says:

“Childcare should be a cornerstone of a fair society, but our findings reveal deep inequalities.

“Disadvantaged families face systemic barriers that prevent them from accessing the childcare they need.

“A reimagined system, with fair funding and local leadership, can transform childcare into a true public service that works for everyone.”

Avatar of Michelle Kight

Michelle Kight

Michelle is a qualified journalist who spent over seven years writing for her local online newspaper. Having grown up in some of the North West’s most deprived areas, she has a first-hand and empathetic understanding of what it means to face serious money worries. With a strong interest in mental health issues, she is a keen advocate of boosting the accessibility of financial wellness services.

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